Letter from Cabot re: Lloyds TSB credit card

muhandis

Hi,

I just received a letter from Cabot financial who say that they "now own your Lloyds TSB plc - Credit Card account" and that the outstanding balance is £1,271.76!

This is the first I'm hearing of this and have no idea what they are talking about. I looked at all the open and closed accounts on my current credit report and it shows the 1 open Lloyds cc that I have and 1 old one which shows zero balance and closed in 2016.

I dug up an old credit report from 2012 (which I'm guessing should show things back up to 2006-07) and that doesn't have any credit cards on it, either open or closed. Just one Lloyds TSB bank account that I used to have.

I'm completely flummoxed and don't remember ever having a credit card before my first one 4-5 years ago. I'm unsure as to what to do.

It could only be one of the following -

- Someone fraudulently opened a cc in my name but then shouldn't that show on my credit report?

- I had a Lloyds TSB cc sometime when I was a student in 2003-2005 and never paid it off.

Would be great if I could get some help on the following please -

1. If this was fraudulently opened in my name by someone else, shouldn't it still show on my credit report?

2. If it is from when I was a student in 2003-05, is it likely that debt chasers will still be on the case after so long?

3. How do I find out what this is related to? I would rather not call Cabot in case they start badgering me or make it my problem to prove that it isn't my problem.

PS: I have a good credit rating and have had no issues opening bank accounts, credit cards or getting a mortgage. I have a current Halifax account, a cc and a Lloyds cc as well.

Thanks in advance!

K

[Deleted User]

Ignore the letter.

Or

Send a prove it letter but make it clear you!!!8217;re not acknowledging the debt.

National_Debtline

Hi Muhandis


I've answered your questions below, I hope this helps.

muhandis wrote: »

Hi,

I just received a letter from Cabot financial who say that they "now own your Lloyds TSB plc - Credit Card account" and that the outstanding balance is £1,271.76!

This is the first I'm hearing of this and have no idea what they are talking about. I looked at all the open and closed accounts on my current credit report and it shows the 1 open Lloyds cc that I have and 1 old one which shows zero balance and closed in 2016.

I dug up an old credit report from 2012 (which I'm guessing should show things back up to 2006-07) and that doesn't have any credit cards on it, either open or closed. Just one Lloyds TSB bank account that I used to have.

I'm completely flummoxed and don't remember ever having a credit card before my first one 4-5 years ago. I'm unsure as to what to do.

It could only be one of the following -

- Someone fraudulently opened a cc in my name but then shouldn't that show on my credit report?

- I had a Lloyds TSB cc sometime when I was a student in 2003-2005 and never paid it off.

Would be great if I could get some help on the following please -

1. If this was fraudulently opened in my name by someone else, shouldn't it still show on my credit report?

Yes it should be showing, unless a default was registered more than 6 years old, in which case the debt would have been removed.

You mention one old credit card on your credit file showing a zero balance and that it was closed in 2016. Could that be the same debt? Creditors can show the account as closed with a zero balance if they have sold the debt on to a new company.

Also bear in mind the three different credit reference agencies can sometimes show different information so it's worth checking all of them.


2. If it is from when I was a student in 2003-05, is it likely that debt chasers will still be on the case after so long?

There's no way to say, but it's certainly possible. If this does relate to the old credit card they may be out of time to collect. This is when a debt is known as statute barred.


3. How do I find out what this is related to? I would rather not call Cabot in case they start badgering me or make it my problem to prove that it isn't my problem.

You can start by sending a prove it letter https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter. This means Cabot have to prove it is your debt before asking you to pay again. If they can prove the debt is yours, you may be able to follow up with a statute barred sample letter.

PS: I have a good credit rating and have had no issues opening bank accounts, credit cards or getting a mortgage. I have a current Halifax account, a cc and a Lloyds cc as well.

Thanks in advance!

K

Best wishes


Susie
@natdebtline

sourcrates

muhandis wrote: »

How do I find out what this is related to? I would rather not call Cabot in case they start badgering me or make it my problem to prove that it isn't my problem.

Send the provit letter, as linked to above by National Debtline.



Then see what they come back to you with, then take it from there.


Its a one step at a time strategy to deal with matters such as this.

quietness

It probably isn't your debt but belonging to someone with a similar name.
I had the same kind of letter from them for a Barclaycard debt, As I'd never had a Barclaycard I just ignored it but they then put a default on my credit report and linked me finacially to someone I'd never heard of and linked me to an address I'd never lived at.
It took me nearly 2 years to get the defaults removed from my credit report. They did pay me some compensation for their error but 6 months later they reapplied the default and I had another fight to get it off.
They buy up old debts and are supposed to go through a trace process to make sure they are writing to the person who the debt belongs to but from my own experience they don't do a very thorough job.
My advice would be to not ignore the letter and as a previous poster suggested send a Prove it letter.
Hope you get it resolved quickly :-)

muhandis

Thank you all for the responses, I feel much better now. I've taken the prove-it letter template from the National Debt Line website and filled it up.

They have mentioned an email address on the letter, do you think it's alright if I just send it by email (will save me a few quid) or recorded snail mail? I have a junk email address that I use exclusively for signing up to things online.

Thanks,

K

jimbo26

Personally I would send it 'signed for'. No doubt over it being received then.

Nasqueron

jimbo26 wrote: »

Personally I would send it 'signed for'. No doubt over it being received then.

Signed for letters can be refused and/or given it's a big firm, just signed as received alongside thousands of others with no guarantee it was actually seen. Simply use the free proof of posting from the PO and it is deemed delivered 2 days later (when sent first class). Keep the proof alongside a copy of the letter

sourcrates

muhandis wrote: »

Thank you all for the responses, I feel much better now. I've taken the prove-it letter template from the National Debt Line website and filled it up.

They have mentioned an email address on the letter, do you think it's alright if I just send it by email (will save me a few quid) or recorded snail mail? I have a junk email address that I use exclusively for signing up to things online.

Thanks,

K

Email would be ok, but some firms acknowledge email, others do not.
In these situations its best to have a paper trail you can refer back too.


Post is delivered in bulk to these companies, so just obtain proof of posting.

National_Debtline

muhandis wrote: »

Thank you all for the responses, I feel much better now. I've taken the prove-it letter template from the National Debt Line website and filled it up.

They have mentioned an email address on the letter, do you think it's alright if I just send it by email (will save me a few quid) or recorded snail mail? I have a junk email address that I use exclusively for signing up to things online.

Thanks,

K

Hi again Muhandis


Sending an email should be fine, especially if they provided an email address in their letter. Just make sure you keep copies of all letters/emails you send and receive so you can refer back to them if necessary.


If they continue to pursue you for the debt without proving the debt is yours, you will have to grounds to make a complaint. Good luck with everything.


Susie
@natdebtline

muhandis

Quick update: As per the advice above, I had emailed them a 'prove-it' letter a week ago and today received a reply (by snail mail) -

"Thank you got getting in touch with us recently regards to this account.

We've made note of your dispute and we will start to conduct a thorough investigation for you; this may involve contacting the original lender to obtain more information and liaising with departments within Cabot.

We'll keep you informed along the way; if we're unable to resolve your dispute within 5 weeks we'll contact you with an update.

Please be aware that the time frame for resolving our disputes is 16 weeks, of course we hope to have this resolved before then."


Perhaps stupidly, I had called both Lloyds and TSB to ask about this and both of them said they have no record of any defaulted credit credit card in my name.



Thanks,

K